Appeals court upholds PIP reforms

ALLAHASSEE -- A state appeals court Wednesday upheld major changes to the state's personal injury protection law passed by lawmakers in 2012 designed to lower the cost of no-fault auto insurance.

The 1st District Court of Appeal, in its ruling, reversed the decision of Tallahassee Circuit Judge Terry Lewis, who ruled this spring that the changes made to the state's no-fault auto insurance law were unconstitutional.

Personal injury protection insurance, otherwise known as no-fault insurance, pays the first $10,000 in medical expenses for car accident victims, no matter who caused the accident. That way no one has to sue. But, by giving up the right to sue, people must receive something of value in return.

In 2012, lawmakers changed the law to outlaw payments to massage therapists or actupuncturists. They also required accident victims to seek treatment within 14 days and limited payments to chiropractors.

Those changes were designed to curb fraud and decrease the price. But, only a few months after all of the changes became law Lewis had ruled that the changes decreased the value of PIP and were not worth giving up the right to sue.

The 1st DCA, however, invalidated the entire decision by arguing that the plaintiffs in the case -- chiropractors and massage therapists -- didn't have the right to sue because they couldn't show that their constitutional rights had been harmed.

Michael Carlson, the executive director for the Personal Insurance Federation of Florida, which represents several big insurance companies including State Farm, released a statement applauding the decision.

“The PIP reform law is intended to ensure that a motorist with emergency medical needs receives the maximum PIP benefit of $10,000, but applies brakes on the costs for non-emergency medical treatments," he said. "The Legislature took great pains to balance the goals of the PIP law: to provide prompt payment of critical medical and related benefits against the rampant fraud and overbilling plaguing the system."